Cole National to sell $150 million notes via Lehman Brothers, CIBC World Markets

By Paul A. Harris and Sara Rosenberg

St. Louis, Mo., April 29 - Cole National Group, Inc, told Prospect News that its new offering of senior subordinated notes would be managed by a syndicate comprised of Lehman Brothers and CIBC World Markets.

Cole National treasurer Joseph Gaglioti said that the deal will probably close concurrent with the expiration of its recently announced tender offer, on May 23. Cole said Friday it is tendering for its $150 million of 9 7/8% notes of 2006.

"We also asked for a consent that would expire on May 9," Gaglioti added. "Our consent is to basically cut down the call period from a minimum of 30 days to three days."

A syndicate source told Prospect News on Monday that the deal will be structured as $150 million of senior subordinated notes due 2012. The roadshow will start late in the week of May 6.

The Rule 144A notes will be non-callable for five years.

Proceeds will be used to fund the tender.

"They've got 9 7/8% (notes due 2006) and 8 5/8% (notes due 2007). This new offering is going to be pari passu to them both," the syndicate source commented.

Cole National is also looking to amend its current $75 million revolving credit facility, which matures in Jan. 2003, to extend the maturity and to allow for the refinancing of the $150 million in debt, according to a company spokesman. Lehman Brothers and CIBC World Markets are the lead banks for the loan. The amendment should be completed in conjunction with the completion of the note offering, the spokesman said.

The Cleveland, Ohio-based company is a retailer of eye-glass services and managed vision care services which operate inside host stores. Brands include Sears Optical, Target Optical, and BJ's Optical. It also owns and operates the independent brand, Pearl Vision, which is a combination of franchise- and company-owned stores. The company is also in the personalized gift business through Things Remembered.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.